Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity

3. Stockholders’ Equity

On August 7, 2020, we closed a private placement (the “Private Placement”) with certain institutional and accredited investors. We issued a total of 1,611,845 shares of common stock at a price of $6.50 per share, and a total of 365 shares of Series C-1 Preferred Stock and 3,050 shares of Series C-2 Preferred Stock, each with a conversion price of $6.50 per share and a stated value of $1,000 per share, for approximately $13.9 million in aggregate gross proceeds.

Common Stock

At our annual meeting of our stockholders held on September 29, 2020, stockholders approved a proposal to increase the number of authorized shares of our common stock to 25,000,000 shares. Accordingly, on November 5, 2020, we filed an amendment to the Neonode Inc. Restated Certificate of Incorporation, as amended (our “Certificate of Incorporation”), with the Secretary of State of the State of Delaware to increase the number of authorized shares of our common stock to 25,000,000 shares.

On December 29, 2020, we issued 37,288 shares of our common stock to key employees pursuant to our 2020 long term incentive program (“2020 LTIP”) see Note 4.

During the three months ended March 31, 2021, there were no activities that affected common stock.

Preferred Stock

On August 6, 2020, in connection with the closing of the Private Placement, the Company designated (i) 365 shares of its authorized and unissued preferred stock as Series C-1 Preferred Stock by filing a Series C-1 Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Delaware and (ii) 4,084 shares of its authorized and unissued preferred stock as Series C-2 Preferred Stock by filing a Series C-2 Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Delaware.

On September 24 and 29, 2020, respectively, the Series C-1 Preferred Stock and Series C-2 Preferred Stock (together, the “Series C Preferred Shares”) were converted into 684,378 shares of Neonode common stock.

The holders of the Series C-1 and C-2 Preferred Shares were entitled to receive dividends at the rate per share of 5% per annum, totaling $33,000. As of December 31, 2020, all of the preferred dividends had been paid.

On December 7, 2020, we filed Certificates of Elimination with the Secretary of State of the State of Delaware to eliminate the Series A Preferred Stock, Series B Preferred Stock, Series C-1 Preferred Stock and Series C-2 Preferred Stock.

There were no transactions in our preferred stock during the three months ended March 31, 2021 and 2020. No shares of preferred stock were issued and outstanding as of March 31, 2021.

Details of the preferred stock activities are set forth below:

	Series C-1 Preferred Stock Shares Issued			Series C-1 Preferred Stock Amount			Series C-2 Preferred Stock Shares Issued			Series C-2 Preferred Stock Amount
Balances, December 31, 2019		-			-			-			-
Issuance of Preferred Shares for cash		365			365			3,567			3,567
Series C-2 Preferred Stock issued for repayment of short-term borrowings and accrued interest		-			-			517			517
Conversion of Preferred Shares to common stock		(365	)		(365	)		(4,084	)		(4,084	)
Balances, December 31, 2020		-		$	-			-		$	-

Warrants

As of March 31, 2021 and December 31, 2020, there were 431,368 warrants to purchase common stock outstanding.